Close Brothers Asset Management says all its advisers across the group will be providing restricted advice post-RDR.
Close Brothers, which acquired national IFA Cavanagh in April 2011 for £26.2m, says because it will be promoting its own investment products it has decided to class itself as providing restricted advice.
Cavanagh and Chartwell Group, which Close Brothers acquired in September 2010 for £17m, will be offering a restricted advice service.
The company says if Close Brothers does not offer a client a suitable in-house investment product, or if the client wants a different investment provider, its advisers are free to recommend other fund managers using the firm’s research process.
It adds Close Brothers advisers are paid the same whether they recommend an in-house investment solution or a third party product.
Close Brothers Asset Management head of wealth management and former Cavanagh chief executive Andrew Fay says: “All advice provided by Close Brothers will be restricted. Cavanagh, Chartwell and Close Brothers have all been evolving our businesses over many years, and we believe we have evolved to have a proposition that reflects the best from all parties.”
Sovereign IFA director Mark Hibbitt says: “The IFA firms owned by Close Brothers are separated from their parent company with standalone brands. It is interesting to see the adviser firms will also be restricted, and how they go on to communicate that to the clients who knew them as IFAs.”